At the end of this track, which also included market and customer validation with the lean startup approach, 6 ventures reached the final round, three of which received seed funding in order to continue their business concept validation.
Summary of Insights
When talking about business models, we’re not just discussing what value you want to provide for the customer, but also the way you’re providing it and which relationships are created between the company and its customer.
In transitioning to a service model, it’s important to also recognize which capture and lock-in mechanisms you have at your disposal and how you can leverage them to minimize risks and how to help the new business model really take off.
Microsoft, anticipating the cloud revolution, decided on the courageous cross-organizational step of disrupting its own business model so as to handle the revolutionary technology this demanded, and changed its model from one of per-device licensing to one of user service package licensing, shifting to an SaaS model of usability and functionality.